Top 20 Supply Chain Management Software Suppliers 2017

The market for supply chain management (SCM) software, maintenance and services continued its growth in 2016, generating more than $11.1 billion, a 9% increase over 2015 revenues, according to the research firm Gartner.

That total includes applications for supply chain execution (SCE), supply chain planning (SCP) and procurement software. Since the market’s 2% decline in 2009, the market has posted double-digit growth in four of the past six years, according to Gartner. The SCM market is expected to exceed $13 billion in total software revenue by the end of 2017 and exceed $19 billion by 2021, Gartner forecasts, with software as a service (SaaS) enabling new growth opportunities.

“It continues to be a good year for the supply chain overall,” says Chad Eschinger, managing vice president of Gartner. “The Cloud-based segment grew 20%, which is consistent with what we’ve seen in recent years.”

The push for Cloud capabilities also fueled some of the acquisition activity over the last year. Eschinger cites examples such as Infor’s acquisition of GT Nexus, Kewill’s acquisition of LeanLogistics, Oracle’s acquisitions of LogFire and NetSuite, and E2open’s acquisitions of Terra Technology and, more recently, Steelwedge.

“Broadly speaking, we’re seeing cyclical consolidation,” Eschinger says. “For some companies it’s a land grab, for others it’s an effort to add functional and technical underpinnings to go to the Cloud or provide a fuller complement of Cloud capabilities.”

Suite vendors are increasingly inclined to offer end-to-end solutions, Eschinger says, tying in customer relationship management capabilities, replenishment, network design, clienteling and more. In addition to supply chain efficiency, these solutions are also aimed at improving and standardizing the consumer’s experience.

“The Amazon effect continues to wreak havoc in retail and for manufacturers selling direct-to-consumer,” Eschinger says. “Everyone wants real-time visibility into inventory, so data and the associated analytics continue to be front and center for most organizations.”

Read more at Top 20 Supply Chain Management Software Suppliers 2017

Let us know what you think about this article and subscribe us to get updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

What to Expect from the Logistics & Shipping Sectors as E-Commerce Grows Up

Driven by new technologies and e-commerce growth, changes in the global supply chain are expected to impact industrial real estate for the foreseeable future.

Since 2012, Amazon has been aggressively expanding its logistics and shipping services worldwide, disrupting traditional supply chain operators with direct competition for their business.

Chinese “e-tail” giant Alibaba, meanwhile, has deployed technology that cuts into a portion of third-party logistics (3PL) operator profits.

Alibaba’s “One Touch” platform automates export-related services, such as customs clearance and logistics, to make it cost-efficient for small/medium-sized merchants to participate in the global marketplace.

Cyclical and structural factors, including overcapacity in the container shipping industry and greater use of technology in manufacturing, retail and logistics industries, are also disrupting the sector.

Automation and robots are replacing manufacturing, logistics and warehouse workers. A survey by PwC found that 59 percent of all U.S. manufacturers are using robots for some tasks.

A recent report from real estate services firm Colliers International analyzes how these changes are impacting the logistics landscape. The report also looks at the impacts on industrial and logistics properties.

Report author Bruno Berretta, associate director with Colliers International who leads the firm’s pan-European research activities, says that Amazon Prime has entered the logistics market to take control of its supply chain and improve delivery times. He notes that unofficially Amazon is becoming a 3PL service to third parties.

The company is making a big push to establish a logistics network, opening smaller distribution facilities near customers, according to Berretta, who suggests that Amazon is likely to start competing with traditional 3PL services as it opens new markets.

Additionally, Amazon wants to reduce shipping costs, which have a big impact on profits. The Colliers report notes that in 2015 Amazon spent $11.5 billion on shipping costs, which equated to 10 percent of its global sales. By delivering its own goods and using technology to streamline deliveries, the company estimates it would save $3 per package, or $1.1 billion annually.

Read more at What to Expect from the Logistics & Shipping Sectors as E-Commerce Grows Up

Feel free to express your opinions about this topic. Contact us or subscribe to get the latest updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Disney, Depp and the cyber supply chain risk management problem

One field-tested security strategy for information systems and digital content is to address the problem through processes, people and technology. On the process front, all companies involved in the production of digital IP should, by now, be adhering to a proven information security framework that fully addresses supply chain risks. That includes making sure your digital IP is protected at all times, even during post-production (or maybe we should say especially during post-production, given recent incidents).

Fortunately, there is a ready-made cybersecurity framework that companies can use, at no charge, thanks to the US federal government, which has done some sterling work in this area, namely the NIST Cybersecurity Framework.

The current version is a great way to get a handle on your organization’s cybersecurity, and the next version, currently in draft, goes even deeper into the need to maintain cybersecurity throughout the supply chain. For that reason, the draft is worth quoting at length:

“The practice of communicating and verifying cybersecurity requirements among stakeholders is one aspect of cyber supply chain risk management (SCRM). A primary objective of cyber SCRM is to identify, assess and mitigate “products and services that may contain potentially malicious functionality, are counterfeit, or are vulnerable due to poor manufacturing and development practices within the cyber supply chain.”

Read more at Disney, Depp and the cyber supply chain risk management problem

Leave your comments below or contact us for discussions.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Amazon’s and Walmart’s latest moves confirm the death of the middle class as we know it

Amazon and Walmart are battling for shoppers at the highest and lowest ends of the income spectrum, leaving the middle class in the dust.

Amazon, whose Prime service claims more than 70% of upper-income households in the US — those earning more than $112,000 a year — is suddenly going after customers on government assistance who earn less than $15,444 a year for a one-person household.

The retailer on Tuesday announced it would slash the cost of its monthly Prime membership nearly in half, to $5.99 a month, for customers who have an electronic benefit transfer card, which is used for government assistance like the Supplemental Nutrition Assistance Program, better known as food stamps.

“It’s a shot over the bow at Walmart,” said Doug Stephens, a retail-industry consultant. In other words, the strategy is a direct grab for Walmart’s core customers. Nearly $1 out of every $5 in SNAP benefits was spent at Walmart last year, according to Morningstar.

At the same time, Walmart is going after Amazon’s core customers with its $3 billion acquisition earlier this year of Jet.com, which attracts a younger and higher-income group of shoppers than Walmart. The retailer has also recently been snatching up trendy online retailers like ModCloth, Moosejaw, and Shoebuy, and it’s reportedly considering a bid for the high-end menswear brand Bonobos.

Read more at Amazon’s and Walmart’s latest moves confirm the death of the middle class as we know it

If you think this article is interesting, subscribe us to get more updates. Don’t hesitate to contact us for discussion, and leave your opinions in the comment box.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

New DHL report reviews supply chain real estate

Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks.

This has created a new landscape for supply chain real estate, according to a report published by DHL. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.

The findings are part of The New Landscape of Supply Chain Real Estate report, which has been authored by Lisa Harrington, President of the lharrington group LLC, in collaboration with DHL.

The report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver.

Four other forces are at work, and they are having a transformational effect on companies’ distribution center networks.

They include:

  1. The e-commerce revolution
  2. Globalization and right-shoring
  3. Mergers and acquisitions
  4. Technology innovation

“The face of global supply chain networks is changing,” said Harrington, author of the report.

“Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.

“The fact is, the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don’t just save money. They drive growth.”

Read more at New DHL report reviews supply chain real estate

Share your opinions about this article and subscribe us to get updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Three supply chain challenges and how to overcome them

The modern supply chain is becoming more complex by the day. Businesses continue to struggle with keeping their supply chain under control but hidden risks still pose a significant threat to the industry. Even with all the new technologies making their way to the industry, businesses must be aware of these hidden risks and understand how to react appropriately.

Businesses of all kinds must keep supply chain visibility, cyber risk and natural disasters in mind at all times. All of these factors or even just one could have a significant impact on a company’s bottom line. In this current edition of the ‘Challenges and Solutions’ series, we will take a close look at the most troublesome issues in the supply chain and how businesses can avoid or plan for these risks.

New technology

Advancing technology is making its way into the supply chain, forcing businesses to constantly change systems. New services that provide an “Uber-Like” freight experience require supply chain managers to constantly hone their talents and adapt to these kind of digital disruptions. Not only with the Internet of Things be transforming the supply chain end to end, the way people utilize technology to create new processes will need to be monitored. The challenge is keeping supply chain managers and procurement professionals up-to-date and trained with all these new advancements.

Finding a solution can be challenging at first. It will take some time for a business to discover the right process that works for them. There is no one answer fits all, rather a unique, business specific training program must be developed. Some solutions may include putting together a team in charge of locating the latest supply chain innovations and coming up with a plan to train the rest of the staff. Others could be outsourced training programs funded by the organization whose employees will be taking part. Continuous training will be vital in order to remain effective in this transforming industry.

Read more at Three supply chain challenges and how to overcome them

Share your opinions with us in the comment box, and subscribe to get updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

How a pharmaceutical supply chain company is taking advantage of the Internet of Things

In 2014, during a routine check from the Ministry of Health in the U.S., it was found that only 55 percent of vaccines were stored and transported in the temperature conditions that ensured the medication maintained its quality. To put that into perspective, every baby born receives vaccines to prevent diseases such as small pox and measles. If only 55 percent of those vaccinations maintain safety requirements, that creates a situation where a majority of babies don’t get the quality dosage and medication they need to protect them from diseases.

To overcome this challenge, organizations are turning to technology. More specifically, the Internet of Things (IoT) is making it possible to ensure the safer transportation and delivery of medications. Dutch pharmaceutical services company, AntTail, is paving the way for building innovative IoT applications that more effectively track the conditions of medications while in transit.

The team at AntTail built an IoT application using the Mendix low-code application development platform. The application collects sensor data from medication shipments to provide information on temperature, as well as send push notifications to patients with reminders on when to take the medication.

One of the barriers for creating IoT apps is the requirement of many disparate technologies. AntTail uses a central router as a hub for all of the sensors, collecting the data when there is a connection and storing the data when there is no connection to ensure that no data is lost. The Router uses Vodafone’s Managed IoT Connectivity Platform as a way to connect to AWS, and has a Java service running that puts the data into Hadoop.

Read more at How a pharmaceutical supply chain company is taking advantage of the Internet of Things

Leave your comments below and subscribe us to get updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Global Supply Chains Are About to Get Better, Thanks to Blockchain

When an E.coli outbreak at Chipotle Mexican Grill outlets left 55 customers ill, in 2015, the news stories, shutdowns, and investigations shattered the restaurant chain’s reputation. Sales plummeted, and Chipotle’s share price dropped 42%, to a three-year low, where it has languished ever since.

At the heart of the Denver-based company’s crisis was the ever-present problem faced by companies that depend on multiple suppliers to deliver parts and ingredients: a lack of transparency and accountability across complex supply chains. Unable to monitor its suppliers in real time, Chipotle could neither prevent the contamination nor contain it in a targeted way after it was discovered.

Now, a slew of startups and corporations are exploring a radical solution to this problem: using a blockchain to transfer title and record permissions and activity logs so as to track the flow of goods and services between businesses and across borders.

With blockchain technology, the core system that underpins bitcoin, computers of separately owned entities follow a cryptographic protocol to constantly validate updates to a commonly shared ledger. A fundamental advantage of this distributed system, where no single company has control, is that it resolves problems of disclosure and accountability between individuals and institutions whose interests aren’t necessarily aligned. Mutually important data can be updated in real time, removing the need for laborious, error-prone reconciliation with each other’s internal records. It gives each member of the network far greater and timelier visibility of the total activity.

Read more at Global Supply Chains Are About to Get Better, Thanks to Blockchain

If you have any opinions about this topic, share it in the comment box and subscribe us to get more updates.

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

How incorporating IoT into the cold supply chain could save florists millions this Mother’s Day

A leading expert claims that the flower industry could save hundreds of millions of dollars just by ensuring supply chain efficiency in the lead-up to Mother’s Day.

Shipments in the floral industry spike ten-fold in the lead up to Mother’s Day and an estimated $2.6 billion is expected to be spent in 2017 even though it’s estimated that 40 per cent of flowers are never even sold.

David Bairstow, Product VP at location specialists Skyhook, reckons that incorporating the internet of things into the cold supply chain could result in massive savings.

He said: “Supply chain is an industry born out of economies of scale. The same applies to the cost of implementing IoT, as scale increases, return on investment increases. It costs pennies to ship individual flowers; however, using supply chain insights to increase efficiencies and reduce waste, can quickly pay for itself.

“Factoring in that the 40% waste due to unsold flowers amounts to $1.04 billion, it is evident that there is massive scope for improvement. If introducing IoT into the cold supply chain leads to decrease in waste by even 10%, that would result in more than $100 million of savings.”

Companies like KaBloom are constantly optimizing the day-to-day supply chain over time to achieve the most efficient path to the consumer. They see a ten-fold increase in volume on days like Mother’s Day and Valentine’s Day and their supply chain remains largely the same, except for the increased volume on those holidays so if the day-to-day efficiencies are optimized, the likelihood of failures happening on the busiest days can be drastically reduced.

Read more How incorporating IoT into the cold supply chain could save florists millions this Mother’s Day

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone

Cloud-Based Analytics for Supply Chain and Workforce Performance

Plex Systems, a developer of cloud ERP for manufacturing, has introduced two new analytic applications designed to provide manufacturers insight into supply chain performance and their workforce.
The new Supply Chain and Human Capital analytic applications build on the library of applications in the IntelliPlex Analytic Application Suite, a broad suite of cloud analytics for manufacturing organizations.

The Plex Manufacturing Cloud is designed to connect people, processes, systems and products in manufacturing enterprises. The goal is not only to streamline and automates operations, but also enable greater access to companywide data. The IntelliPlex suite of analytic applications aims to turn that data into configurable, role-based decision support dashboards–with deep drill-down and drill-across capabilities. The IntelliPlex Analytic Application Suite includes analytics for sales, order management, procurement, production and finance professionals.

IntelliPlex Supply Chain Analytic Application
The new IntelliPlex Supply Chain Analytic application provides a dashboard for managing strategic programs, such as enterprise supplier performance, inventory and materials management and customer success. Metrics include:

  1. On-time delivery and return rates by supplier, part, material, etc.
  2. Production backlog by part group, product time, etc.
  3. Spend by supplier and type, including unapproved spend
  4. Inventory turns and aging based on type, location, etc.
  5. Materials management accuracy, adjustments and trends by type, location, etc.
  6. On-time fill rate, customer lead time, average days to ship, fulfillment by location

Read more at Cloud-Based Analytics for Supply Chain and Workforce Performance

Share your opinions with us in the comment box, and subscribe to get updates in your inbox.

 

Share on FacebookShare on Google+Share on LinkedInTweet about this on TwitterEmail this to someone